NEWS FLASH

For the longest time you could not get a loan on about 90% of the condos out there.

It looks like that is about to change, at least for the condos here where I live.

Check this out. You could get a 2br/1.75 bath, totally renovated condo here for a principle and interest payment for under $300 per month (assuming 5% loan). There is one on the market right now. Click here to see what’s available.

Naturally, you will have HOA fees and insurance on top of that, but you are still living large for under $600 per month.

I met a woman who bought one of the condos here with a normal good old fashioned loan. I spoke to her lender and we think we could do it again, due to changes in the way FHA views some condos now.

This is a HUGE development.

If you want to find out more, please call me at 602-456-9388.

Remember Econ 101?

When the supply of something goes down, prices go up.

So we are sitting on the crest of a wave. It won’t be a massive wave, but this is where it turns around. Those who are fully employed are sitting on more savings than they have had in decades (about 6% versus 1%, usually). They are not spending because they are watching for good economic news, which is starting to trickle in.

These people have been very attracted to the market (lowest prices in decades and lowest interest rates in centuries), but they are just waiting for good news. Then they will act and act quickly.

The following is the news they are waiting for. Watch as people trying to get the best deals before prices go up actually help drive prices up.

1) Days on Market.  You are seeing here that homes are not staying on the market quite as long. In fact, quite dramatically. Just look at the drop since December. Simply put, as soon as the good homes come on, they are getting snapped up! The properties that need a little work or that are not priced right will stay on a little longer. This will drive down inventory.

2) Active listings –watch that pink line! What you are seeing here is the number of active listings starting to shrink again. Two reasons, (1) people are already starting to snap up the best homes and (2) the foreclosures and short sales are going away. It won’t happen over night and it won’t be extreme. But prices will increase. An increase in prices by 10% combined with increased interest rates can mean over $100 per month more on a $150,000 home.